The queues echoed this classic Conservative 'Labour isn't working' ad which helped the Tories gain power in 1979

The official number of 1.97million out of work was the highest since just after Labour came to power, and does not include those sacked this year or the 7.86million Britons classed as 'economically inactive' who may be claiming benefits.

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The Office for National Statistics also reported that nearly 3,000 people are being made redundant every day.

Last night ministers were preparing to cut the number of work permits handed to non-EU workers, amid fears of a possible backlash from jobless Britons.

The issue of 'British jobs for British workers' has sparked a series of illegal wildcat strikes across the country in the past week.

Yesterday around 150 workers were said to have downed tools at Staythorpe gas-fired power plant in Nottinghamshire.

Unions said dozens of construction workers at the site walked out after claiming 41 steelworkers had been threatened with the sack for refusing to cross a picket line outside the £660million facility.

'British jobs for British workers': Illegal wildcat strikes have been sparked across the country including in Staythorpe where 150 workers downed tools

The unofficial strike came five days after unions reached an agreement with French oil firm Total to end wildcat action over foreign workers at the Lindsey oil refinery in Lincolnshire - a dispute which triggered walkouts at another 20 plants around the country.

In the past year, the number of UK nationals in work fell by 278,000 to 25.6million.

But the number of non-UK nationals in work rose by 214,000 to 3.8million.

Last year a record 151,000 work permits were handed out to foreigners.

Home Office sources said the 'bar could be raised' on the new points-based immigration system to make it harder for foreign workers to enter the UK.

Immigration Minister Phil Woolas said in a statement that he expected the number of foreign workers to be cut.

A cleaner wipes the windows of the Job Centre Plus shop in central Portsmouth yesterday morning

Dr John Philpott, chief economist from the Chartered Institute of Personnel and Development, said: 'The final quarter redundancies figure of 259,000 is fairly horrendous.

'The normal lag between redundancies being made and people joining the unemployment count also indicates that unemployment remains on course to rise above three million before the economy recovers.'